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Giving Compass' Take:
• The Movement Advancement Project shares the results of a survey of LGBTQI organizations, highlighting the loss of fundraising revenue.
• Have you shifted your giving in response to the pandemic, leaving worthwhile causes without support? How can you balance the pressing needs created by the pandemic with the long-term needs of movements?
• Consider supporting Horizons Foundation's LGBTQ COVID-19 Response Emergency Fund.
As the COVID-19 pandemic continues to challenge the United States and the world, the impact on the nonprofit sector in the United States is becoming clearer. An analysis of more than 233 nonprofits found that 73% reported a drop in revenue, with many organizations finding the uncertainty of the current moment making it difficult to plan for the short and long term, while another survey of nearly 300 organizations found that 64% cut program services as a result of the pandemic.
For 16 years, the Movement Advancement Project (MAP) has conducted annual surveys of the nation’s leading LGBTQI social justice organizations as well as LGBTQ community centers. Building on this expertise, in March 2020 and continuing through June 2020, MAP conducted several surveys of LGBTQI and allied social justice organizations to understand the impact of COVID-19 on these organizations’ financial projections and stability with a focus on revenue and expenses, cash reserves, relief sources, and short-term and long-term planning.
In April 2020, organizations predicted substantial drops in fundraising and program revenue, including roughly 25% decreases in both corporate giving and individual giving and more substantial projected declines in fundraising events and program income. If they come to fruition, these projected declines across all participating organizations would result in $24.1 million in lost revenue.
By June 2020, 45% of organizations who responded indicated that they had in fact reduced their 2020 budgets in response to the pandemic, with an average budget decrease of 17%.
Organizations have responded to the pandemic and its economic toll with creativity and resilience. On the whole, organizations are responding with cautious optimism. They are continuing the important work of advancing LGBTQI equality and supporting the communities they serve. Organizations are taking a measured approach, making decisions quarter-by-quarter as the situation evolves.